Zephyr closes tranche of private placement

Trading Symbol: TSX-V: ZFR Shares Outstanding: 22,580,628

HALIFAX, July 23, 2014 /CNW/ - Zephyr Minerals Ltd. ("Zephyr" or the "Company") (TSXV: ZFR) is pleased to announce the closing of a tranche of the previously announced private placement and that it issued 1,733,333 units at a price of $0.15 per unit for aggregate proceeds of $260,000. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at an exercise price of $0.20 per common share at any time on or before July 23, 2015. Company may consider closing a second tranche of up to 266,667 Units for additional gross proceeds of up to $40,000 subject to timing and demand.

Net proceeds from the funds raised will be used to advance the Dawson Gold Project and for general working capital purposes. The private placement remains subject to compliance with the requirements of the TSX Venture Exchange.

In connection with the closing, the Company paid cash finder's fees of $2,712 and issued 18,080 finder's warrants to finders acting on behalf of the Company in connection with the private placement. Each finder's fee warrant is exercisable into one common share of the Company at $0.20 per share, for a period of 12 months from the closing date.

All securities issued in connection with the private placement, including the shares and warrants comprising the units and the finder's warrants, are subject to a four-month hold period that expires on November 24, 2014.

Certain insiders and other officers and directors of the Company subscribed for an aggregate of 1,082,333 units.

About Zephyr Minerals Ltd.

Zephyr Minerals Ltd. is a gold exploration and development company focused on advancing its flagship Dawson Gold Project ("Dawson Project") in Colorado, USA. Dawson is an advanced stage high-grade gold property with excellent blue sky potential. In the fall of 2013, Zephyr announced filing on SEDAR a compliant technical report, prepared in accordance with National Instrument -- Standards of Disclosure for Mineral Projects ("NI 43-101") on Dawson. Zephyr intends to commence base line environmental studies as part of its efforts to advance the Dawson Project with the ultimate goal of production, subject in part to a positive economic study.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.